23 Questions
What is the main purpose of each Lloyd's syndicate?
To write insurance and receive profits
In the context of insurance, what is the role of reinsurance companies?
To protect insurers by laying off some risks
Which sector of risks does Lloyd's specialize in insuring?
Casualty, property, and marine risks
What makes Lloyd's of London known worldwide in the insurance industry?
Its reputation for innovation and insuring unusual risks
What distinguishes reinsurance contracts from regular insurance policies?
Reinsurance contracts can involve sharing all premiums and losses
Which of the following is NOT a major reinsurer mentioned in the text?
AIG Re
What is the purpose of an insurer laying off some risk with a reinsurer?
To protect themselves against potential losses
How does Lloyd's of London contribute to the insurance industry through innovation?
By developing policies for aviation, burglary, and cybercrime
What type of risks does Lloyd's specialize in?
Specialist and complex risks in various sectors
Why do insurers use reinsurance companies according to the text?
To hedge against risks associated with their insurance policies
Which term is used interchangeably with fund management in the text?
Asset management
What is the primary focus of private client fund managers as mentioned in the text?
Investing the money of relatively wealthy individuals
What distinguishes institutional fund managers from private client fund managers according to the text?
Type of assets they manage
Where is the UK positioned in terms of fund management globally?
Second
What makes London stand out as a prominent international centre for fund management?
Its ability to attract significant overseas funds
How are fund managers, investment managers, and asset managers related in the context of the text?
They are terms used interchangeably to describe professionals in the industry
What distinguishes the activities of institutional fund managers from private client fund managers?
The source of the funds they manage
Why is the UK considered a significant hub for fund management globally?
Because it serves a large number of domestic and overseas clients
What activity characterizes the work of investment managers according to the text?
Buying and selling shares, bonds, and assets to increase clients' portfolio value
How do fund managers contribute to the financial industry?
By running portfolios of investments for a variety of clients
What distinguishes unit trusts from open-ended investment companies (OEICs) in the field of fund management?
Their legal structure and regulatory requirements
'Asset management' is another term used interchangeably with which main term in the text?
'Investment management'
What characterizes the investments made by private client fund managers according to the text?
'They originate from relatively wealthy individuals'
Test your knowledge on derivatives by taking this quiz focusing on financial services sector and insurance markets. Learn about the largest insurance markets globally and the management of risk. Source: https://www.bis.org/statistics/rpfx22_fx.pdf
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